Status: In theory, all residential customers
in the State are allowed to choose natural gas suppliers, but virtually
all customers still purchase gas from a local distribution company because no marketers are offering merchant services that would be an
alternative.

Overview: Unbundled service has been “on the
books” to all natural gas customers in West Virginia since 1986. Under
Senate Bill 117, passed in 1983, intrastate pipeline companies and local
distribution companies (LDCs) were required to be common carriers. The
procedural laws were completed in 1986 and covered all customer classes.
In order to receive unbundled service, customers must install metering
equipment or pay standby charges. According to the Public Utility
Commission of West Virginia and LDC representatives in the State, no marketers or aggregators are active in the State and only
a few residential customers received unbundled service in 2006. These
customers have independent arrangements with producers or well owners for
natural gas supply that is transported by the LDCs. Based on the most
recent Energy Information Administration data for 2005, only 4 of the
State's 374,301 residential customers were receiving unbundled service. In
1996, the Public Utility Commission of West Virginia initiated a general
investigation into ways to make customer choice easier by pooling
customers, and filed proposed rules in June 1998. However, no demand has
materialized for that type of service. Currently, pooling arrangements are
used for interruptible customers (generally industrial or large-volume
commercial users).

EIA State Data: In 2005, West Virginia had 374,301 residential customers who consumed 30 billion cubic feet (Bcf) of natural gas at an average price of $13.00 per thousand cubic feet. The commercial market was much smaller, at 25 Bcf and 36,535 consumers. The average price paid by commercial customers for natural gas purchased from local distribution companies was $12.22 per thousand cubic feet.